1: Journal Entries Prepare all necessary journal entries for an equity investment. Part 1: Temporary Differences Sharp Company has two temporary differences between its income tax expense and income taxes payable. The information is shown below. 2018 Pretax financial $462,000 2019 $500,500 2020 $519,750 income Excess depreciation (16,500) (22,000) (5,500) expense on tax return Excess warranty 11,000 5,500 4,400 expense in financial income Taxable income $456,000 $484,000 $518,650 The income tax rate for all years is 40%